Billionaire investors identify high-growth stocks and invest in companies that have the potential to keep growing. Investing in artificial intelligence (AI) companies building infrastructure for the next decade can be a smart strategy. While mimicking billionaire investors’ moves may not always be a good idea, it is worthwhile to consider where they’re putting their money.
Several hedge funds are loading up on tech stocks, and there’s reason enough to. The tech sector has remained one of the most lucrative sectors in 2025, and investors want to capitalize on the growth trajectory by loading up on AI stocks. Here are three tech stocks billionaires are buying.
Nvidia
Billionaire investors bought NVIDIA (Nasdaq: NVDA) shares in the second quarter of 2025. Tiger Global Management purchased 11.7 million shares, increasing its stake in the company by 6.8%. Appaloosa Management holds a $276.5 million stake in the company, and Third Point increased its stake by 1.35 million shares worth $285 million. Coatue Management boosted its stake in the company and holds 11.5 million shares.
These moves show strong confidence in Nvidia’s potential among Wall Street’s most successful hedge funds. It isn’t difficult to guess why Wall Street loves Nvidia.
The company is firing on all cylinders, and the stock has been on a roll. It reported a revenue of $46.7 billion, up 56% year-over-year, driven by strong data center sales. The networking revenue from sales of products reached $7.3 billion, up 98% year-over-year.
Nvidia’s Blackwell-based AI infrastructure system is adopted by popular cloud services providers, including Microsoft (NASDAQ:MSFT) and OpenAI. The company continues to face U.S. restrictions on the sale of GPUs to China, and while the management has already excluded China-related revenue from the third-quarter guidance, the company is aiming for regulatory approvals.
The stock isn’t cheap, but the premium is worth it. Looking at its historical performance, investors are paying for a company that has exceptional technology and massive demand for its products. With increased AI spending and billionaires loading up on the stock, Nvidia is set for an excellent end to the year. The company reports results on November 19.
Microsoft Corporation
Billionaires know the value of a good business, and they make timely moves to be a part of its growth story. Several billionaires are buying Microsoft stock. Ray Dalio bought 908K shares and increased his position by 111.9%, while Stanley Druckenmiller’s Duquesne Family Office added a new position in the company.
Besides a long history of generating strong revenue growth and profits, Microsoft is a business that has the potential to grow your money. In the recent quarter, it generated $27.23 billion in net income and $76.44 billion in revenue. The growth is driven by the Azure cloud service, which saw a 26% year-over-year jump in revenue.
Azure is the second-largest cloud infrastructure platform and rakes in massive revenue each quarter. Microsoft is investing heavily in AI, and its partnership with OpenAI has benefited the business.
Microsoft’s capital expenditure came in around $30 billion for the quarter, and despite the cash outlay for data centers, its free cash flow is growing. The company reported a free cash flow of $71.6 billion for the year. This offers enough liquidity to continue the massive spending required to build new data centers.
Exchanging hands for $509, the stock is up 21.78% year-to-date and over 100% in five years. Microsoft is trading at a premium, but the solid business is worth the price.
Alphabet
Billionaire investors have bought significant stakes in Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) stock in the second quarter. Bridgewater Associates added 2.56 million shares, increasing its position by 84%, while Tiger Global Management increased its stake by 3.1%.
These investors believe in the company’s growth trajectory and are willing to bet on its AI strategy. Alphabet owns some of the biggest products, such as YouTube, Google Search, and Google Cloud. It has integrated AI into its core offerings and has seen significant improvement in user engagement, thus enhancing monetization.
The company has announced an investment of $15 billion to set up an AI hub in India. This move comes amid growing competition in the tech sector, where companies are heavily spending on building new data center infrastructure to meet the demand.
For the second quarter, Alphabet reported a 14% year-over-year jump in revenue to $96.4 billion, and the net income was up 19% year-over-year to $28.2 billion. Google Search saw double-digit growth, while YouTube saw an improvement in subscriptions. Google Cloud revenue was up 32% year-over-year to $13.6 billion. Its backlog increased 38% to $106 billion. Alphabet is working on enhancing the cloud capacity and investing in data centers. It added $10 billion to its capex budget this year.
Exchanging hands for $241, the stock is up 26% in 2025 and 45% in a year. It has stable financials, a strong valuation, and a robust search business. GOOG is a strong buy for long-term investors.
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